PRINTER'S NO. 701
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
583
Session of
2017
INTRODUCED BY VULAKOVICH AND RESCHENTHALER, APRIL 17, 2017
REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,
APRIL 17, 2017
AN ACT
Authorizing a tourism promotion fee for counties of the second
class; providing for Second Class County Tourism Promotion
Fund and for distribution of money from the Second Class
County Tourism Promotion Fund; and establishing the Sports
Commission in a county of the second class.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Second Class
County Tourism Promotion Fee Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Commission." The Sports Commission established under
section 6(a).
"Consideration." A receipt, fee, charge, rental, lease,
cash, credit, property of any kind or nature or other payment
received by an operator in exchange for or in consideration of
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the use or occupancy by a transient of a room in a hotel for any
temporary period.
"Convention center or exhibition hall." A building that:
(1) is not used for the retail sale of merchandise or
part of a shopping center, mall or other retail center,
including any land appurtenant to a part of the shopping
center, mall or other retail center;
(2) has a major function of housing meetings,
exhibitions, shows, conventions, assemblies, convocations or
other similar gatherings; and
(3) contains no less than 300,000 gross square feet of
exhibition space for shows and conventions.
"Fund." The Second Class County Tourism Promotion Fund
established under section 4(a).
"Hotel."
(1) As follows:
(i) a hotel, motel, inn, guest house or other
building located within the taxing jurisdiction which
holds itself out by any means, including advertising,
license, registration with an innkeeper's group,
convention listing association, travel publication or
similar association or with a government agency as being
available to provide overnight lodging or use of facility
space for consideration to persons seeking temporary
accommodation;
(ii) a place which advertises to the public at large
that it will provide beds, sanitary facilities or other
space for a temporary period to members of the public at
large; or
(iii) a place recognized as a hostelry.
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(2) The term does not include portions of a facility
which are devoted to persons who have established permanent
residence at the facility.
"Occupancy." The use or possession or the right to the use
or possession by a person other than a permanent resident of a
room in a hotel for any purpose or the right to the use or
possession of the furnishings or to the services accompanying
the use and possession of the room.
"Operator." An individual, partnership, nonprofit or profit-
making association or corporation or other person or group of
persons who maintains, operates, manages, owns, has custody of
or otherwise possesses the right to rent or lease overnight
accommodations in a hotel to the public for consideration.
"Patron." A person who pays the consideration for the
occupancy of a room in a hotel.
"Permanent resident." A person who has occupied or has the
right to occupancy of a room in a hotel as a patron or otherwise
for a period of more than 30 consecutive days.
"Regional tourism promotion agency." As defined under the
act of July 4, 2008 (P.L.621, No.50), known as the Tourism
Promotion Act.
"Regional tourist promotion activities." Services,
activities, facilities and events which result in a significant
number of nonresidents visiting a county of the second class for
recreational, cultural or educational purposes.
"Room." A space in a hotel set aside for use and occupancy
by patrons or otherwise for consideration which has at least one
bed or other sleeping accommodation.
"Temporary." A period of time of no more than 30 consecutive
days.
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"Tournament." An organized amateur sporting event consisting
of participants who are engaged without remuneration in
national, regional and State sporting activities, which
encourage travel for overnight lodging in a county of the second
class.
"Transaction." An activity involving the obtaining by a
transient or patron of the use or occupancy of a hotel room from
which consideration emanates to the operator under an express or
an implied contract.
"Transient." An individual who obtains accommodation in a
hotel by means of registering at the facility for the temporary
occupancy of a room for the personal use of the individual by
paying to the operator of the facility a fee in consideration
for the accommodation.
Section 3. Second class county tourism promotion fee.
A county of the second class may impose a tourism promotion
fee of no more than 2% on the consideration received by an
operator of a hotel within the county from a transaction of
renting a room to accommodate a transient. The operator shall
collect the fee authorized under this section from the patron of
the room and transmit the fee to the county.
Section 4. Second Class County Tourism Promotion Fund.
(a) Tourism promotion fund.--A county of the second class
opting to impose the fee under section 3 shall establish a
Second Class County Tourism Promotion Fund as a special fund in
the county treasury.
(b) Deposits.--The treasurer of a county of the second class
opting to impose the fee under section 3 shall collect the fee
and deposit the money in the fund.
(c) Reports.--Recipients of funds generated by the second
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class county tourism promotion fee shall make annual audited
reports of the receipts and expenditures of the funds to the
President pro tempore of the Senate, Speaker of the House of
Representatives, Minority Leader of the Senate, Minority Leader
of the House of Representatives, county executive, president of
county council, county controller and county treasurer.
(d) Audits.--The county controller of a county of the second
class may conduct audits of the use of funds generated by the
second class county tourism promotion fee.
Section 5. Distribution of money.
(a) Reserve fund deposit.--
(1) Prior to any distribution under subsection (b), 10%
of the money in the fund shall be deposited in a reserve fund
established by the commission.
(2) The amount deposited under paragraph (1) shall not
exceed the following:
(i) Three million dollars.
(ii) The amount specified under subparagraph (i) as
adjusted for inflation annually according to the Consumer
Price Index for All Urban Consumers.
(b) Distribution.--The money in the fund shall be
distributed by the treasurer of a county of the second class as
follows:
(1) Two percent to a home rule charter municipality
where a regional tourism promotion agency is established by
the home rule charter municipality in a county of the second
class, at the request of that municipality, be returned to
that municipality for deposit in that municipality's special
fund, which is separate from all other municipal revenue,
established solely for purposes of paying for promotional
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programs implemented by a nonprofit organization which are
designed to stimulate and increase the volume of conventions,
meetings and visitors within the municipality shall be used
for, but not limited to, the following purposes:
(i) Capital improvements and advertising the area
served by the regional tourism promotion agency as a
convention and business travel destination.
(ii) Marketing and advertising the area served by
the regional tourism promotion agency as a convention and
business travel destination.
(iii) Marketing and advertising the area served by
the regional tourism promotion agency to the public as a
whole for use of its tourist and convention facilities.
(iv) Marketing and advertising the area served by
the regional tourism promotion agency as a leisure travel
destination.
(v) Using all appropriate marketing and advertising
tools to accomplish the purposes designated under
subparagraphs (i), (ii), (iii) and (iv), including, but
not limited to, advertising, publicity, publications,
direct marketing, direct sales and participating in
travel trade shows.
(2) Ten percent to the film office that is recognized by
the Association of Film Commissioners International which is
located in a county of the second class to grow the regional
film industry for the purpose of attracting movie, television
and commercial productions through marketing initiatives.
(3) Eighteen percent to the Sports and Exhibition
Authority established under Article XXV-A of the act of July
28, 1953 (P.L.723, No.230), known as the Second Class County
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Code, for capital improvements to a convention center or
exhibition hall located in a city of the second class,
including all of the following:
(i) Capital cosmetic improvements to enhance the
convention and sports experience for clients.
(ii) The purchase and maintenance of physical
improvements, including, but not limited to, permanent
marquees, integrated electronic informational boards and
signage, event signage, stadium-style seating, multiuse
sports courts and related assets to include quality,
tournament-ready equipment as identified by the National
Collegiate Athletic Association (NCAA) for various
sports, including, but not limited to, basketball,
volleyball, soccer, lacrosse and other sports assets and
equipment that would attract additional events.
(iii) Upgrades to programmable space that enhance
the customer experience through improved functionality,
aesthetics and upgraded technology.
(4) Twenty-two percent to a regional tourism promotion
agency in a city of the second class for the purpose of
establishing the commission.
(5) Twenty-five percent to a regional tourism promotion
agency in a city of the second class for the purpose of
establishing a convention promotion and marketing fund. The
regional tourism promotion agency shall use the money in the
convention promotion and marketing fund for, but not limited
to, any of the following purposes:
(i) Securing future meetings and conventions for a
convention center or exhibition hall in a city of the
second class that provides for the use of multiple
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hotels.
(ii) Transportation associated with the production
of meetings and conventions held within a county of the
second class.
(iii) Operating costs associated with the production
of meetings and conventions held within a county of the
second class.
(6) Five percent to the treasurer of a county of the
second class for costs of collecting the tourism promotion
fee under section 3.
(7) Eighteen percent to the commission for regional
tourist promotion activities. The revenue shall be used by
the commission for any of the following purposes:
(i) Construction, upgrades and maintenance of
amateur sports-related tournament locations in parks
throughout a county of the second class to a standard
which would attract hosting of national, regional and
State sporting tournaments.
(ii) Swimming pool upgrades for competitive
tournament-level events in parks owned by a county of the
second class.
(iii) Enhancing the marketability of sports-related
events in parks owned by a county of the second class to
a standard which would attract hosting of national,
regional and State sporting tournaments.
(c) Reserve account.--
(1) An entity that receives money under subsection (b)
may deposit any unused money in a fiscal year into a reserve
account in the county treasury of a county of the second
class.
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(2) Money in the reserve account under paragraph (1) may
be withdrawn by the entity that deposited the money for the
purposes specified under subsection (b) for subsequent fiscal
years.
Section 6. Sports Commission.
(a) Establishment.--The Sports Commission is established in
a county of the second class.
(b) Members.--The commission shall consist of, but not be
limited to, the following members:
(1) One member appointed by the President pro tempore of
the Senate, who resides in a county of the second class.
(2) One member appointed by the Speaker of the House of
Representatives, who resides in a county of the second class.
(3) One member appointed by the Minority Leader of the
Senate, who resides in a county of the second class.
(4) One member appointed by the Minority Leader of the
House of Representatives, who resides in a county of the
second class.
(5) The county executive or the county executive's
designee, who resides in a county of the second class.
(6) The mayor of a city of the second class, or the
mayor's designee, who resides in a county of the second
class.
(7) Five members appointed by the recognized regional
tourism promotion agency of a county of the second class.
(8) Five members representing tourism and economic
development.
(9) Four members representing hotels and lodging
appointed by the recognized hotel association located in a
county of the second class.
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(10) Three members representing professional sports
franchise teams located in a county of the second class,
which shall include the following:
(i) One member from the National Football League.
(ii) One member from the National Hockey League.
(iii) One member from Major League Baseball.
(11) Three members representing Division I sports
programs, as identified by the NCAA, from colleges or
universities located in a county of the second class.
(c) Bylaws.--The commission shall adopt bylaws necessary to
conduct business.
(d) Executive committee.--The commission shall establish an
executive committee not to exceed 11 members.
(e) Meetings.--The commission shall meet at least annually
and from time to time as it determines necessary.
(f) Powers and duties.--The commission shall appropriate
revenue provided to a county of the second class under section
5(b)(7).
Section 7. Effective date.
This act shall take effect in 90 days.
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